Financial Performance - The profit attributable to the owners of REF Holdings Limited for the six months ended June 30, 2024, was HKD 5,302,000, a decrease of 47.4% compared to HKD 10,087,000 for the same period in 2023[1]. - The company reported a pre-tax profit of HKD 6,070,000, a decline of 48.9% from HKD 11,861,000 in the prior year[1]. - Revenue for the six months ended June 30, 2024, was HKD 63,221,000, a decrease of 16.3% compared to HKD 75,551,000 for the same period in 2023[20]. - The group's gross profit for the period was approximately HKD 34.4 million, a decrease of 14.3% from HKD 40.1 million in the previous period, with a slight improvement in gross margin to 54.3%[73]. - Net profit attributable to the company's owners was approximately HKD 5.3 million, down 47.4% from HKD 10.1 million in the previous period, resulting in a net profit margin decrease of 5.0 percentage points to 8.4%[77]. Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 48,000, significantly lower than HKD 11,953,000 in the same period last year[9]. - Cash and cash equivalents at the end of the period were HKD 18,203,000, down from HKD 40,972,000, reflecting a decrease of 55.6%[20]. - The overall cash flow decreased by HKD 17,989,000 compared to an increase of HKD 23,613,000 in the previous year, highlighting a shift in cash management[20]. - The company reported a net cash outflow from investing activities of HKD 11,277,000, contrasting with a net inflow of HKD 60,027,000 in the prior year[20]. - Financing activities resulted in a net cash outflow of HKD 6,760,000, compared to HKD 48,367,000 in the previous year, indicating a significant reduction in financing costs[20]. Assets and Liabilities - Total assets as of June 30, 2024, were HKD 88,934,000, compared to HKD 87,030,000 as of December 31, 2023, indicating a slight increase[4]. - The company’s total equity attributable to owners increased to HKD 78,028,000 as of June 30, 2024, from HKD 72,754,000 at the end of 2023[5]. - Trade receivables increased to HKD 37,052,000 as of June 30, 2024, compared to HKD 22,754,000 in the previous year, reflecting a rise in outstanding payments[4]. - Lease liabilities increased significantly to HKD 42,653,000 from HKD 4,074,000, indicating a substantial rise in leasing commitments[43]. - The group's total assets to liabilities ratio increased to 0.58 as of June 30, 2024, from 0.12 as of December 31, 2023, primarily due to increased lease liabilities[81]. Expenses - The gross profit margin for the period was approximately 54.5%, down from 53.0% in the previous year, with service costs amounting to HKD 28,868,000[1]. - The company’s administrative expenses remained stable at HKD 19,371,000, slightly down from HKD 19,377,000 in the previous year[1]. - Total employee benefit expenses decreased to HKD 25,123,000 from HKD 27,122,000, representing a decline of 7.4%[32]. - The group's service costs decreased by approximately 18.6% to about HKD 28.9 million, compared to HKD 35.5 million in the previous period[73]. Dividends and Shareholder Information - The company declared dividends of HKD 38,400,000 during the period, impacting retained earnings significantly[7]. - The group did not recommend any interim dividend for the period, following a final dividend of HKD 0.15 per share paid in May 2023[85]. - Major shareholders hold 192,000,000 shares, representing 75% of the issued share capital[101]. Business Operations - The company operates a single business segment, providing financial printing services, with all revenue generated from Hong Kong[25]. - The core financial printing business faces challenges due to geopolitical tensions and slowing economic growth[95]. - The company has not disclosed any major new products or technologies in the current report, focusing instead on existing financial printing services[20]. - There were no individual customers contributing more than 10% of total revenue during the reporting period, indicating a diversified customer base[26]. Governance and Compliance - The company has adopted corporate governance principles to ensure prudent regulation of business activities and decision-making processes[104]. - The audit committee reviewed the group's unaudited condensed consolidated performance and confirmed that the financial data and reports were prepared in accordance with applicable accounting standards and regulations[108].
REF HOLDINGS(01631) - 2024 - 中期财报